There are few factors leading to Yuan appreciation in 2017. Those are explained below:

1. Stronger economic growth in China

   _{One of the primary reasons for the yuan's appreciation was a return to stronger economic growth in China. It has lead to investor confidence in the currency.}

2. Political changes in the United States

   _{As mentioned in the case study, the election of Donald Trump as President of the United States gave significant impacts as his administration's policies and statements regarding trade and currency influenced the investor confidence and capital flows. For instance, the statements regarding weaker dollar would benefit U.S. exports, led to decrease in confidence in the dollar.}

3. Global Capital Flows

   _{The foreign exchange market is highly sensitive to changes in global capital flows. In this period, there was a shift in investment patterns, with capital moving away from the U.S. and into other markets, including China. This shift was partly due to investors seeking to diversify their portfolios in response to uncertainty about U.S. policy directions.}